Why “Billionaire’s Row” Pays the Lowest Property Tax Rate in NYC

Why “Billionaire’s Row” Pays the Lowest Property Tax Rate in NYC


432 Park Avenue, designed by Rafael Viñoly is the tallest residential tower in the Western Hemisphere. One57 designed by Pritzker Prize winning architect Christian de Portzamparc has service run by Hyatt’s five-star staff from their Park Hotel. This is Billionaires Row, a stretch of new super tall residential skyscrapers with multi-million dollar apartments in midtown Manhattan.But many of these 100 million dollar apartments that have been purchased, now sit empty, and their owners pay less in property taxes than the average New York City homeowner. These apartments are a safe investment. They’re also lucrative. Not only because the New York City housing market keeps climbing upwards, with a 52 percent price increase, and new developments over the past five years, but also because they don’t cost a lot to maintain. That’s because their taxes are so low. The billionaires who own these apartments are paying a tiny fraction of the taxes that they’d be paying if they lived in a regular apartment building of the same price. Look at this chart by CityLab. It shows how much the apartments would be taxed if the city used the average property tax compared to how much they’re actually paying. The reason why they’re not paying anything in taxes is because New York City’s property tax laws were put into place in 1981. New York City sorts all property into four classes; small residential, large residential, commercial, and industrial. Classes one and two are for the small and large residential buildings. The buildings we’re looking at fall under class two, since they are almost all individually owned condominiums without rental incomes, the city’s Department of Finance chooses a comparable rental building, and creates an imaginary income statement for the condominium based on how much its rental counterpart is making. Then they formulate a property tax off of that number. They don’t take into account the sale price. So, that 100 million dollar price tag is ignored. The problem is is that there is just no comparable buildings for those on Billionaires Row. Any comparison is a wild undervalue. So, billionaire owners pay the property tax rates of buildings with way, way less value. Not that they’re complaining, and there’s more additions on the way. 111 West 57th Street, designed by SHoP Architects is the skinniest, super tall building in the world. Central Park Tower also called the Nordstrom Tower is not completed yet, but will top out as the tallest residential building anywhere. When architect Jean Nouvel’s new building nicknamed The MoMA Tower is complete, it won’t compare to any rental building. After all, do any of those have temperature controlled wine vaults? The owners of Billionaires Row pay less property taxes by percentage than most homeowners. But Mayor Bill De Blasio and a Democrat-filled city council formed an advisory commission on property tax reform in May. They’re looking for a way to make their system revenue neutral, which would hopefully balance out the vast disparity in property taxes. Even still, the buildings have passed a literal shadow over Central Park, and have noticeably changed the New York City skyline. But one thing is for certain, this is where the money is. Leave a comment below, throw us a like, subscribe, and ring the bell to be notified for our next video.

100 Comments

  1. American Nacirema says:

    In short, New York is a fucking cesspool that should never…ever….ever, preach politics or finances to the rest of the sane U.S.

  2. Drug Induced Fever dream says:

    The rich (1%) have all the money, and pay next to no taxes. The middle class do all the work, and pay all the taxes.
    The idea that started America is long dead. It has been dead since the industrial revolution, and there is nothing we can do about it.

  3. Lazonby Bear says:

    Again rich but not pay they're fair share

  4. MrWaffleBrainz says:

    Taxation is theft.

  5. John Keating says:

    Would you want to pay more taxes?

  6. Erik Borch says:

    Other people have said it before but I'll say it again; it's time for Land Value Tax

  7. Drowsy_ Mouse says:

    Rich fucking the rest of us over and controlling the government. what else is new

  8. Jason Atkins says:

    lets be honest who really cares

  9. Guilherme Ferreira says:

    People are butthurt because they can't have a life like that and say it's unfair

  10. P says:

    That skyscraper is making me nervous. It looks like strong winds could snap it in half.

  11. Yeetus Thefoetus says:

    It’s because there rly fucking expensive

  12. Kilo Byte says:

    Assuming you get the tax increase, does this mean normal people will see a tax break? Nope! More taxes = more spending for the gimmiecrats!

    Let's talk about the 50% of rent-stabilized renters who are paying below market rate. How is this fair to the other 50% who end up paying even higher rent?

  13. RealSyndrome says:

    The poor stay poor,
    The rich get rich.

  14. Ritz Kola says:

    What’s happening is The West (Pacific) is becoming unlivable for most Americans and affordable for the rich. Likewise the Northeast (Middle Atlantic).
    The South is experiencing growth because of how cheap but there are pockets in the south, a few cities, where things are becoming expensive. Miami, Atlanta, etc.
    The Midwest as a whole is still the cheapest.

  15. AA Tech says:

    Greedy thieves looking for more money to tax.

  16. Fuzzybucket says:

    this is why we need to put all republicans to death

  17. Fuzzybucket says:

    whats the insta for the girl in this video?

  18. yakir israel yadai says:

    Make the average city home owner pay less – not the billionaire pay more – you Democrat idiots.

    Or as Margaret Thatcher said “you would rather the poor were poorer, provided the rich were less rich”

  19. Won't see me coming says:

    I call this "JEALOUSY".

  20. WindMaker KC says:

    I wanna do her on a piece of furniture

  21. Zimri Hinshaw says:

    “But one thing is for certain, this is where the money is”… huh?

  22. bryan mendez says:

    Because the people that live here are the ones that create jobs for u bums so stfu

  23. 1n4r0m5d1.m31 says:

    NYC is a shithole. Strangers avoid communication with one another, there are rats everywhere, and the apartment rent is 1000/month for a closet size room. It's a shithole, especially on Nye.

    Y'all think the south has it worse, but we're actually living a lot better than you. So, have fun with that.

  24. Lowry says:

    She looks like hermione

  25. SlangJeezy says:

    Stop complaining. All this needed to be a Vox video was to blame it all on Trump. You live in NYC and complain about high property taxes? No shit. It comes with living there, and it’s well known. NYC is expensive because people continue to WANT to live and work there. It’s just supply and demand, people. The NYC government could easily assess higher taxes on these million dollar condos, but why would they? Maybe they would drive out people that aren’t a drain on the city economy. They NEED their tax dollars. You think the majority of tax revenue comes from poor people? Guess again. NYC is a Democrat’s wet dream. They could pass laws tomorrow and gather 10X more taxes on homes over 1 million dollars. But they don’t. Why is that? Because people would take their money and leave. NYC can’t afford that. But it sure is easy to make a video complaining about how “poor” people are getting shafted because they “pay more” in property taxes. If you pay 3% tax on your $100K home and I pay 1% on my $10M home, which one has paid more money? But it’s just not FAIR! Cry me a fucking river.

  26. StateView Capital says:

    Amazing video displaying the profits long term for owning high end real estate.🎁🌇🏞🏛✅

  27. Mr. Sarvy says:

    This girl is qt :3

  28. Artem Chikrin says:

    taxation is theft

  29. Who knows says:

    Meanwhile small businesses are getting strangled by the nys/nyc gov. ridiculous amount of fines and taxes they love to give. Literally the gov. here is destroying the middle class faster than any other state. Especially now with amazon.. just wait for it.

  30. David Arndt says:

    I need one of those rooms lol

  31. hengineer says:

    Wah. "Percentage". Haha they included that bit barely.

  32. I am Chappy says:

    Property tax is also based on the size of the land they arnt very wide their skinny and tall dont take up much slave

  33. darkdancerman says:

    Maybe put some numbers in the video for context…

  34. darkdancerman says:

    Is this girl 14?

  35. Drew Chamberlain says:

    Keep complaining about rich people and taxing them. One day they'll leave and everyone will be screwed. You need them for tax base

  36. G. Warren says:

    If it was about ”america first” then, no foreign-born person should be able to own property in America!

  37. Questchaun says:

    Capitalism is so awesome…

  38. J C says:

    Tax the billionaires into submission

  39. ekklesiast says:

    Taxation is theft

  40. artended says:

    Debil blazio

  41. Wowza Dude says:

    I don’t mind taking one of those rooms for you.

  42. __spencer__ says:

    I'm not gonna lie, I'm crushing.

  43. TehConqueror says:

    doesnt that mean that they're incentivized to keep these buildings empty as the only reason stated for comparable taxing is the lack of actual income?

  44. Ram-n_dodge says:

    No, this is certain. You have amazing tits

  45. Redmailnet says:

    Classic. Fuck poor people, I guess…

  46. Elena says:

    She looks like 14, but has an adult voice. I want to pinch her cheeks 😀

  47. SuperCuriosities says:

    I am really impress how many socialist or unemployed people post fake info. Out of the contest of this video (which is focused on something specific). Richer people pay more on taxes both total and %. 1.- Get a job. 2.- Pay taxes, do not expect money back. 3.- Now you can talk (since you will know what people who pay taxes live). The more the merrier. But paying more taxes. Going back to this video. NY probably did it to generate thousands of employees (yes, surprise!, this building do not rise by themselves >.< now, witch hunting is starting and…. since socialist is sadly becoming a trend, why not? Let tax those way more and see them fall… this is not about fair or unfair things. It is about hate speech (not refering to this good video but our current situation in the USA)

  48. Debbie R says:

    Jesus is the way to become rich………..
    He said ,"Trust me and all of your needs shall be met."
    Mathew
    …25 For whoever wants to save his life will lose it, but whoever loses his life for My sake will find it.
    26 What will it profit a man if he gains the whole world, yet forfeits his soul? Or what can a man give in exchange for his soul?
    27 For the Son of Man will come in His Father’s glory with His angels,
    and then He will repay each one according to what he has done.…

  49. harvinsi says:

    This video has no point. Entertainment news.

  50. Some One says:

    Why billionaires pay for nothing at all in this world you meant, right?

  51. Gui Rocha says:

    Doens't matter the sales price, only the amount of land and location. Charging stupid amounts of tax would only mean render projects like these mega towers unlikely to happen. This means charging big tax would send away these billionaires to other places and I am sure the city is making a lot of money out of the money they spent by these super rich people. Also take into account the jobs generated to maintain these stupid rich towers and that is pretty much a win for the city as a whole. So no need for this socialist super taxation for the rich because that only sends away money and if you don't agree just take a look at what happened to France when they increase tax for the super rich.

  52. Mysticpoisen says:

    I'd say sort out your audio and get a better set before cutting to a live-action host. It's jarring at the moment, but I think once the audio and video quality are on par with the rest of the footage, it'll be mitigated.
    The audio is the biggest bit, the VO is high quality, but then you switch to what looks like a $30 LAV. You are at minimum going to need a much higher quality LAV, and get the acoustics of the set in order with some bass sinks Or go for broke and mount a boom mic.
    Out of curiousity, what microphone do you use for VO. It's difficult to tell, but it sounds like a Shure condenser, and yet definitely not the SM7B.

  53. Fox says:

    Tax laws were written to benefit landowners and business owners play the game right or get played Buddy

  54. Jamil Vints says:

    Cries in poor

  55. FreeStyle says:

    Linus mentioned you

  56. dnyalslg says:

    The hostess of the video sounds like she can't even.

  57. haseeb siddiq says:

    Yea bcuz they have smart attorneys with them that they find every loop holes possible to pay less tax . How rich they are , they're still smart when it comes to money

  58. none given says:

    Once again it's expensive being poor

  59. Nekorn Lammayot says:

    Unconscious bias from both sides here. I understand where you’re coming from but on tax dollar psf I wonder who pays more?

  60. Alan Downunder says:

    >property tax by percentage
    When you have a 100 million dollar apartment and they pay 1 percent that's 1 million dollars. Whereas a $300,000 with, say, 3 percent tax only nets $9,000 in tax. The tax rate is lower but they're spending a fuck load more.

  61. alexjav21 says:

    Y'all busy the second wednesday of sept?

  62. JavierCR25 says:

    Interesting… and Ali is super cute too

  63. Earl Gray says:

    * * * Wow I bet them rich billionaires must have a "Trumps-eye" view of the homeless veterans sleeping on the sidewalks down below. Oi Vey !

  64. Anthony L says:

    For a state left state, those are so damn low taxes!

  65. Nelson Thangjam says:

    America is broken. Neoliberal capitalism is broken.

  66. MuffHam says:

    This is just an example of income disparity in income equality. We need to end the massive wealth gap. Where 99% of the wealth is controlled by 1%. While the remaining 99% of people share 1% of the wealth. It has too end.

  67. haha20042003 says:

    More taxes for the city to waste. I understand the need to tax these property more but why, if the city going to waste it. We have to look first at the root cause of the problem, it’s wasteful government. If they didn’t waste so much, we can lower taxes on regular property instead of looking to raise taxes on the rich. Which is fair too. Either raise taxes on the rich or decrease the taxes on the middle class and poor. Every time they have a budget problem the government look to raise taxes from who and where ever they can. Why don’t they solve the real issue by spending less.

  68. Eddie Brock says:

    This is BS.
    I hope they close this gap.

  69. Shannon Love says:

    So New York City puts in a weird tax during the Democrats heyday of 1950-1990. The tax is intended to protect longtime residents of gentrifing neighborhoods from being taxed out of their homes because the sales price of surrounding houses had gone up. The brainiacs neglected to think about how the opposite case would work with expensive properties.

    Typical of the city, in my long experience. They try to do something fancy and redistrbutionist and it backfires.

  70. Princé Bankz says:

    Honestly, that building just looks weird … it's so slender and tall, compared to what Manhattan actually has

  71. Alexandra Smith says:

    This narrator cannot pronounce words very well

  72. Wilfromdahil Gaming says:

    Because the people that own the building also own the government

  73. Jeremy Pickett says:

    The presentation is spot on, the content is on the nose, your appearance is elegant, and the problem is engaging. I don't have much to say other than Keep On Keepin' On. (And msg me in Instagram :D)

  74. Osvaldo Gil says:

    You’re cute

  75. SILENTIMACT74 says:

    The presenter is a total babe!

  76. Joe Om says:

    So they do comps with buildings that are way far less than its value and micky mousing the comp values as well in a nutshell being able to take out the price tag element because NYC laws say if its not a rental and its owned then this makes them eligible to do so? Thats just as “creative” as Bezos being able to pay its employees through stocks and printing amazon “money” or the feds printing paper through its epson 24hrs a day backed by mickey mouse figures. Aww lucky them. Must be nice 😔

  77. Lord KROK says:

    intresting video

  78. Mithotyn444 says:

    The owners pay much more then the average people. Even with the supposed 'low' rate. If you want the money just say it. What is all this nonsense like theres some interstellar law about how NY city should take peoples money. Idiot.

  79. Plague Angel says:

    Too many socialists in the comment section. When did being rich become a disgrace?

  80. حسين فنفخ says:

    Taxation is theft

  81. Creative Inventions says:

    Schools are designed to promote kids who shut up and follow directions and not kids who have better ideas and more energy to implement them

  82. Brian Donahue says:

    Maganificint

  83. Brian Donahue says:

    NYC loves our billionaires

  84. al bundy says:

    Rich always find way to avoid Fees where ever what ever they do , I pay 8000 $ property tax and I own 250 000 $ house at New Jersey my House Hold income around 50 000 and Governer of New Jersey ( EX ) she was living multi million $ Mansion and paying few hundred $ tax he has been put his land as Farm and His farm sell few hundred $ Fire woods and this way he is exemp from would be up to 50 K TAx a year . Another Sad story , Voters who were shooting their leg by keep Electing " Crooks " like them over and over again .

  85. TechSys Engineer says:

    Enough w/ the vocal fry – so fucking annoying.

  86. KK Malik says:

    The reason "is that"

  87. Lector Kreuzritter Kleinbittersdorf says:

    $100 Million Condo => $ 2 M property tax annum + $1.5 M annual administration fee (heating electricity and management)= cost 3.5 Million per year, approximately? NO?

  88. Annie Lanier says:

    Jump to 1:44, you’re welcome

  89. Mateusz B says:

    So not a single apartment is for rent on billionaires row? What would happen if someone started renting their apartment in billionaires row? Would everyone's taxes go up, since they now have something to compare it to?

  90. TheHvk says:

    The wealthy bending the rules to suit themselves, how shocking.

    The biggest scam is how wealth/passive income are taxed at a LOWER rate than earned wage income. You pay a higher tax rate going to work for a living and EARNING your money than you do SITTING ON YOUR FAT PAMPERED ASS collecting dividends. Stupid.

  91. FocusPics says:

    We need less taxes not more

  92. screenwriterjohn says:

    So…you're saying we should have a workers' revolution?

  93. c a t says:

    cheap housing for the rich! Who says America doesn't have socialism (*for billionaires*)

  94. Vex T says:

    The reason why billionaires pay so little in tax for these skyscrapers is because they have hired attorneys that know how to decipher and interpret Legal Codes to benefit their networth, while poor people who aren't trained in Legalese barely read one page of IRS Tax documents and then ignorantly undersign their name onto a Income Tax document that obligates them to pay a tax fare for whatever income they acquired annually.

    So don't fucking undersign anything you do not completely understand especially if you are not being directly forced by any man or woman to sign it, and there's a big fucking difference between actually knowing and assuming you know Legal and IRS Codes!

  95. Shakdi Dagalimal says:

    If the taxes were proper – that means based upon actual value, purchase price, those prices would plummet and then the ultra rich wouldn't be just exchanging piles of cash with each other, they'd actually have to pay their fair share, so all the trillions in the ballooned stock market and mortgage bundling schemes and scams wouldn't be so lucrative. The crime is right out in the open and explained, but since "government" condones and facilitates the corruption and crime the peonic tards go "duh.. otay, wooks good our prebescent gubbamint did doin it".

  96. Victory First says:

    Hope the law changes for the better !!!!!!!!!!!

  97. gabehcuoD suoitneterP says:

    Ugly eye soars. Demolish them.

  98. koubiweb Channel says:

    The richest always get Way with Tax

  99. Temisan Popo says:

    you can't own an apartment

  100. Sam Coe says:

    vocal frrrrrry

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